General Mills (GIS) beat Q3 earnings expectations and raised their FY2023 outlook Thursday. Let's check out the charts and indicators.
In this daily bar chart of GIS, below, I can see that prices have rallied the past 12 months but show weakness from December. In February GIS broke below the rising 200-day moving average line but a downtrend did not develop. After trading below the 200-day line for about two weeks, GIS gapped above this trend following indicator.
The On-Balance-Volume (OBV) line shows a decline from the middle of December and suggests that sellers of GIS have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator recently moved back above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of GIS, below, I see a mixed picture. In the most recent weekly candles I see upper shadows telling me that traders are rejecting the highs but today prices have made a new high for the move up. The latest weekly candle is not plotted but it is likely to be bullish.
The slope of the 40-week moving average line is positive. The weekly OBV line has been in a sideways move since August. The MACD oscillator has been pointed down but it has been narrowing and that is a positive development.
In this daily Point and Figure chart of GIS, below, I can see a potential upside price target in the $93 area.
In this weekly Point and Figure chart of GIS, below, I can see the same upside price target of $93 as seen on the daily chart above.
Bottom line strategy: The price trend of GIS is up but the volume indicators do not confirm the gains. I suspect that GIS will struggle to overcome the $86-$88 area.
